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  • Dovish actions taken by the Bank of England last week, particularly its sterling corporate bond buying programme, helped send short dated credit and equity implied volatility near to their post-crisis lows, prompting traders to begin to roll out of short volatility trades and size up potential bumps in September.
  • Bank capital structuring has become a bit more boring. With little fanfare, regulators have killed some of the most interesting new products in the market before they got off the ground — meaning bank capital alchemy is no more.
  • Spanish engineering firms with exposure in Latin America may not be the most heavily traded segment of the credit markets, but they are certainly proving the most vulnerable.
  • Sterling bond yields may be sinking but that has rekindled investor demand for UK bond exchange traded funds at the expense of Gilts, according to IHS Markit.
  • Support for the London Stock Exchange and Deutsche Börse’s merger plans has solidified among the German exchange’s shareholders, with more than 75% having tendered their shares — crossing the original threshold set by management.
  • Increased provisioning and DBS’ high exposure to Swiber has raised some questions about the bank’s handling of the problem and the overall quality of Singaporean lenders’ portfolios, considering their local market is heavily composed companies in cyclical sectors such as oil and gas.